Question

Find x if the Price Index Number by Simple Aggregate Method is 120, taking 1995 as base year.

Commodity	A	B	C	D
Price (in ₹) for 1995	95	y	80	35
Price (in ₹) for 2003	116	74	92	42

Answer 1

Commodity	Price in 1995 (Base year)	Price in 2003 (Current year)
	p0	p1
A	95	116
B	y	74
C	80	92
D	35	42
Total	y + 210	324

From the table, `sum "p"_0 = y + 210, sum "p"_1 = 324`

Given, Price Index Number (P₀₁) = 120

Since `"P"_01 = (sum "p"_1)/(sum "p"_0) xx 100`

`120 = 324/("y" + 210) xx 100`

∴ y + 210 = `(324 xx 100)/120`

∴ y + 210 = 270

∴  y = 60